Issue - meetings

Cabinet, at its meeting on 11 November 2022, considered the report of the head of finance on a review of the Council Tax Reduction Scheme. 

Cabinet supported changes to the scheme to help local residents during the current cost-of-living crisis and beyond. 

RECOMMENDATION: that for the 2023/24 financial year onwards, the council continues to adopt the previous 2022/23 Council Tax Reduction scheme but with the following amendments:

·       to remove the 91.5 per cent limit (cap) when calculating the council tax bill,

·       to remove the band E restriction for all residents, so that qualifying residents will have their Council Tax Reduction calculated at 100 per cent of their council tax bill, after any deductions and based on their property’s actual council tax band, and

·       to reintroduce the second adult rebate scheme to working age residents, in order to give a maximum 25 per cent reduction where they live with another adult on a low income. 

Council considered Cabinet’s recommendations, made at its meeting on 11 November 2022, on a review of the council’s Council Tax Reduction Scheme.

RESOLVED: that for the 2023/24 financial year onwards, the council continues to adopt the previous 2022/23 Council Tax Reduction scheme but with the following amendments:

·       to remove the 91.5 per cent limit (cap) when calculating the council tax bill,

·       to remove the band E restriction for all residents, so that qualifying residents will have their Council Tax Reduction calculated at 100 per cent of their council tax bill, after any deductions and based on their property’s actual council tax band, and

·       to reintroduce the second adult rebate scheme to working age residents, in order to give a maximum 25 per cent reduction where they live with another adult on a low income. 

To consider the head of finance’s report. 

Cabinet considered the head of finance’s report on a review of the Council Tax Reduction Scheme. 

The report proposed to reverse three amendments made to the scheme in 2014.  This would provide greater support for low income working individuals and families that had previously been penalised financially and would provide a fairer council tax reduction for all residents on a low income.  The calculation of working age council tax reduction was based on 91.5 per cent of their council tax liability, rather than 100 per cent.  Council tax collection data indicated that the current minimum charge of 8.5 per cent and the Band E restriction had both caused hardship for working individuals and families. 

The Cabinet member for finance reported that, considering the current cost-of-living crisis and the cost to collect the potential shortfall, this change should help reduce potential hardship.  The proposals would enhance the current scheme to ensure it helped residents during the cost-of-living crisis and continued to be fair on all residents and protect the most vulnerable. 

Cabinet supported the proposal, believing that the council must do all it could to help local residents during the current cost-of-living crisis and beyond.  The proposal was a compassionate response and would help those most in need. 

RECOMMENDED to Council on 7 December 2022:

that for the 2023/24 financial year onwards, the council continues to adopt the previous 2022/23 Council Tax Reduction Scheme but with the following amendments:

·       to remove the 91.5 per cent limit (cap) when calculating the council tax bill,

·       to remove the band E restriction for all residents, so that qualifying residents will have their Council Tax Reduction calculated at 100 per cent of their council tax bill, after any deductions and based on their property’s actual council tax band, and

·       to reintroduce the second adult rebate scheme to working age residents, in order to give a maximum 25 per cent reduction where they live with another adult on a low income.